Last checked at 7 Jul 2008 07:00
HAMBLEDON MINING PLC
(AIM: HMB)
Operations Update
Hambledon Mining plc ("Hambledon" or the "Group" or the "Company"), the AIM-listed gold mining and processing company operating in Kazakhstan, is pleased to report good progress at its Sekisovskoye operation.
Although June was affected by a lower than normal grade of ore being treated, production at Sekisovskoye is continuing to make steady progress towards reaching design capacity. Towards the end of the month, higher grade material was being treated and the full process circuit was in operation, giving much higher production levels.
The unforeseen clay-like material is lasting longer than expected but the remaining amounts can be blended with hard-rock ore without significantly affecting future production. Some of the ore that was crushed during the affected period is oversized and hence requires more milling. This will continue to affect production in July. Alterations will be made to the crusher in the first half of July, including the use of different conveyor belts and a redesigned feeder, which should improve reliability.
At Ognevka, further test-work is being carried out to improve copper and precious metals recovery from clinkers. A separate test-work programme into the means of treatment of the large resource of pegmatite tailings, of which 1.6 million tonnes are owned by the Company, is ongoing. Whilst this is happening, the focus of the management team and all of the Company's resources will be dedicated to optimising Sekisovskoye. Once that has been achieved, Hambledon will return to the significant opportunity that exists at Ognevka.
Nick Bridgen, Chief Executive of Hambledon Mining, commented:
"We continue to progress towards optimising production at Sekisovskoye and, even with the obstacles experienced in the earlier part of the year, we expect to achieve the annualised production rate shortly. We remain on course to become cash generative in the second half of the year."
7th July 2008
Enquiries
Hambledon Mining plc Telephone: +44 20 7233 1462
Charles Zorab
Lothbury Financial Telephone: +44 20 7011 9411
Michael Padley / Louise Davis
Seymour Pierce Telephone: +44 20 7107 8000
Nicola Marrin
Note to editors
Hambledon Mining plc is an AIM-listed gold mining and exploration company, which is operating the Sekisovskoye gold mine and owns the Ognevka processing plant, both of which are close to Ust Kamenogorsk in East Kazakhstan.
At Sekisovskoye, the Company is mining from an open pit and has constructed an 850,000 tonnes per year treatment plant. Production from the open pit will average over 40,000 ounces per annum. As soon as steady production has been achieved, the Company plans to develop the much larger underground resource that is expected to lead to a combined production rate of around 100,000 ounces per year.
Concentrates produced from the Ognevka processing plant contain gold, silver, copper, iron and coke arising from the re-treatment of zinc smelter residues.